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Inventory Stock
Jezza1983
Member Posts: 3
Hi guys, quick one I thought of the other day, not even sure if its integrated already. But I own a mechanical repair business, and I tend to purchase parts to use for repair of vehicles and motorcycles, I wondered if it would be simple to have an Inventory/stock counter generated. It seemed a simple task from my thoughts as I personally use Bills to enter quantities of what I purchase, vs Invoice to charge the items. Seems simple to track the "in" and "out" quantities to give us a Stock holding counter.
Handy for re-orders etc.
Cheers
PS: Loving using Wave, fantastic tool.
1
Comments
Hi @Jezza1983
Inventory management is a feature that I agree would help many Wave users run their business. Currently, Wave is committed to providing a system that primarily relates to completing bookkeeping and invoicing options, and inventory management seems slightly outside of this.
Having said that, there is a way that may work for you in Wave. When exporting your data from Wave, you can get a list of items sold per item in Excel format. To do this, click on settings in the menu on the left and choose the very bottom option. It'll give you every individual line items on all of your invoices. You can then adjust the information to show you the product and quantities of the sold products and you can subtract this from a running total that you would keep outside of Wave.
I also would like to see an inventory management system. It would be a big win for my business. I'm currently calculating COGS using the periodic method, but as the number of SKUs sold grows, this will become increasingly unwieldy.
Xero offers it on all their accounts, although for me I'd probably have to subscribe to the $30/mo plan. With Quickbooks I'd have to get the $60/mo plan - both amounts more than I want to pay. I've been enjoying Wave so far as I've evaluated it, and it's easily the best free tool on the market, but this is probably the biggest gap for me.
+1!
How do you handle deducting inventory from Assets? COGS is debited and Inventory is credited with a journal transaction. However, Inventory cannot be debited without a corresponding credit.
Hi Guys
I am the treasurer for a small private bar, I think Wave is great. Once a year I have to do a 'stock check' how would this be entered?
Thanks Steve
Hey @DMAjic .
Every time you make a sale, create a Journal Transaction that debits your Cost of Goods Sold account, and credits your Inventory account by the value of the inventory you have sold or used up in delivering your service. Your Balance Sheet will reflect the decrease in your Inventory asset, and the Gross Profit on your Profit & Loss Statement will reflect the cost applied to the sale. Always record the value of Inventory at the purchase cost to your business; not the price you will sell it. If you purchase many different items, you will probably want to have multiple Inventory accounts, and/or keep a record of your purchases, the cost per unit purchased, and the inventory used for each sale, in a spreadsheet. So it sounds like you are already doing everything right. I hope this clarifies but let me know if it does not!
@oursteve in terms of performing a stock check, Wave isn't really designed for managing your inventory quantity (e.g. we don't have a function to say you have 10 bottles of vodka, etc), but rather for managing the value of said inventory. However, if you perform a stock check, and learn that your current inventory is either overvalue or undervalue (due to losses of inventory, or recovered items since last stock check), you should be able to create a debit or credit to your inventory account to adjust the value.
I'm still confused. Purchases to build a product is an expense does that go as a debit in the COGS account or as a credit? When Inventory is sold how is that "taken off the books" as an asset?
Hey @DMAjic it might be easier if I asked what events in particular you are keeping track of, as you may need to track inventory different depending on this.
Would you be able to provide me with an example of the things you are buying and how they are used in your final sold product?
I found my problem. Expenses can be under Expenses or Cost of Goods Sold. In the Chart of Accounts you cannot tell which one except during setup. When I created my Manufacturing Expense account, the wrong tab was selected. I've asked for an improvement to show the hierarchy.